PBL Articles

There are over 800,000 businesses in Australia, and at the Bendigo we recognise that none of them are exactly the same as yours. That’s why we offer business solutions that can be tailored to suit your business needs today, next year and five years from now.

At Bendigo Bank we understand that for business owners, business is personal. So our Branch Managers and Business Bankers take a personal interest in your business. They listen, understand your opportunities and challenges, and deliver banking solutions that are practical and save you time and money.

Importantly, our business specialists understand the various phases of development that your business will go through. Not only does this ensure we have appropriate banking solutions for every stage of your business, it also means we understand what is ahead of you, and can help guide you through it.

Of course, there are many sources of business information available and it’s always wise to seek information on your business - and your banking - from a number of different sources. 

A useful starting point, however, is Bendigo Bank’s ‘Start. Run. Grow. Finance. Guide’. This handy booklet, available free of charge from your local Bendigo Bank branch, covers some of the challenges you’ll face while running your business.

Over the next few months we’ll take a look at some of these challenges in our regular column.

For those just starting out, that may be establishing a business plan, budgeting and cash flow. If you’re already up and running, staffing issues and marketing may be top of mind. While for those of you looking to take the next step, we’ll look at strategies to help you prepare for growth.

You’ll also find a range of other useful ‘Start. Run. Grow. Finance.’ material on the Bendigo Bank website at www.bendigobank.com.au/business. While you’re there, why not subscribe to our quarterly Business Focus e-newsletter for all the latest news from industry experts and Bendigo Bank’s own business specialists.

If you’d like to discuss how Bendigo Bank’s range of business banking products and services can help you save time and money, contact your local Business Banker Michael Sims at the Dee Why Branch or on 02 99840614

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From 1 July 2007 the ATO has broadened the criteria for a range of small business tax concessions. Small businesses with an annual turnover less than $2 million are called small business entities and may qualify for a range of tax concessions.

Eligible businesses can choose to use the concessions which suit their business although they may have to satisfy additional conditions. They will have to check if they qualify for the concessions each tax year.

Some of these concessions were previously only available to businesses in the simplified tax system. The simplified tax system no longer operates, however all of its concessions remain available to eligible businesses.

What are the concessions?

Capital gains tax (CGT) 15 year asset exemption
If you are aged 55 or older, retiring and your business has owned an asset for at least 15 years you won’t pay CGT when you sell the asset.

CGT 50 per cent active asset reduction
If you’ve owned an asset to conduct your business (an ‘active asset’) you’ll only pay tax on 50% of the capital gain when you sell the asset.

CGT retirement exemption
There is CGT exemption on the sale of a business asset, up to a lifetime limit of $500,000. If you are under 55, money from the sale of the asset must be paid into a complying superannuation fund or approved deposit fund or a retirement savings account.

CGT roll-over
If you sell a small business asset and buy a replacement, you can roll over your CGT liability to the value of the replacement asset. This means you won’t pay any CGT owing until you sell the replacement asset.

Simpler depreciation rules
Generally, you can pool your assets to make depreciation calculations easier and also claim an immediate deduction for most assets costing less than $1,000.

Simpler trading stock rules
You can choose whether or not to do an end-of-year stock take if the value of your trading stock has not increased or decreased by more than $5,000 over the year.

Immediate deduction for certain prepaid business expenses

You can claim an immediate deduction for prepaid business expenses where the payment covers a period of 12 months or less that ends in the next income year.

Entrepreneurs’ tax offset (ETO)

The entrepreneurs’ tax offset may reduce your tax payable by up to 25% where your business has turnover less than $75,000.

Accounting for goods and services tax (GST) on a cash basis

You are not required to account for the GST on a sale you make until you receive payment for the sale.

Annual apportionment of GST input tax credits

If you purchase items that you use partly for private purposes, you can choose to claim full GST credits for these items on your activity statements, and then make a single adjustment to account for the private use percentage at the end of the year.

Paying GST by instalments

You can pay GST by instalments worked out for you by the Tax Office. You can vary this amount each quarter if you choose.

Fringe benefits tax (FBT) car parking exemption

In some cases you may be exempt from FBT for employee car parking.

If you would like more information on these concessions or wish to discuss how they are relevant to your business, please contact Peter Lever at Northstar Accountants on 9999 2344 or Peter@nsg.com.au This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
The contents of this Newsletter are general in nature. We therefore accept no responsibility to persons acting on the information herein without first consulting us.

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Results in Business Institute (RIBI) recently conducted a survey of more than 300 businesses across Australia and NZ with the aim of building an understanding of how business owners are finding it in this time of full employment and a strong economy.

The survey was specific in its (6) questions – asking business owners their three top issues and asking them whether they were getting an adequate return on their business, whether they were paying a staff member more than they earned themselves and whether they were tertiary qualified or had spent money on their business skills since school.

The survey highlighted how tough some small business owners are doing it and how many of us are paying a high price for our independence.

More than 60% were paying a staff member more than they were paying themselves and more than 60% felt their salary did not justify the time and effort they put into running their business. This was despite more than half being tertiary qualified and more than half having spent money on self improvement or business training.

The three top issues for business owners were:

• Finding, motivating and retaining staff

• Cash flow

• Marketing / finding clients

Ross Hancock, the CEO of RIBI was quoted in the press as being shocked but not surprised at the results of the survey - "many business owners are not really reaping the fruits of their labours when they have to factor in the high costs of just being in business"
If this sounds like you - you are not alone! That's not much consolation, I know but it perhaps tells you that you are not necessarily completely incapable - it really is difficult.
I’ve resisted the temptation here to tell you exactly how business coaching will help you but I will suggest some things you can do if any or all of these apply to you.

• Go and get a job!

Ok, I’m kidding but at some point it is worth considering whether running a business of your own, with the independence and self-reliance that we like but with the extra stress and without the stable income is the right choice to make. It is sometime necessary not to hold on to something if it is irretrievable and we should be mature enough to face these questions.

• Step back from all the day-to-day issues and have a look at your business.

Ask yourself whether your business is heading in the right direction and whether you should be doing anything differently to help it head in the right direction
You’d be surprised how little of this you have done in recent times, especially if you’ve been busy trying to keep your head above water – without drowning under the sea of urgent tasks (maybe you’ve neglected some of the less urgent but more important tasks.
So give yourself some time to assess the situation.

• Make a plan (and write it down) to change your business.

After your stepping back and assessing, don’t waste it – plan to how you are going to change it and write your plans down. Once written, they are harder to ignore and much more real.

•  Then you have to act.

Sorry, but that’s the only way you’ll get change – to actually do something.
It’s a fairly basic process – I’m sure you’re not sitting there nodding and saying “Wow, this bloke has some amazing insights”. But it is necessary if you are to change your business.
You can do this yourself. If you take the steps above and you have the discipline to stay focused on it, it can be done. Of course, you can seek outside help to guide you, to push you and to hold you accountable.
That’s the job of a business coach. Watch for the special offer for PBL members, from Small Fish or contact Jon and ask him what it is. 9940 0346 or jon.dale@sfbc.com.au This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Small Fish Business Coaching is a member of the Results in Business Institute (RIBI) - a network of independent business coaches and consultants in Australia and New Zealand. RIBI’ mission is to support business coaches, like Small Fish, to provide coaching and consulting services to the small business community in Australia and New Zealand.  To this end, RIBI sources the systems, manuals and training courses that I use to structure and guide my coaching programs and which, of course, I provide to my clients from time to time.

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